Seacoast Company provided the following information about its standard costing system for 2013: Standard Data Actual Data Materials 10 lbs. @ $4 per lbs. Produced 4,000 units Labor 3 hrs. @ $21 per hr. Materials purchased 50,000 lbs. for $215,000 Budgeted production 3,500 units Materials used 41,000 lbs. Labor worked 11,000 hrs. costing $220,000 InstructionsCalculate the labor price variance and the labor quantity variance.
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
Seacoast Company provided the following information about its
Standard Data
Actual Data
Materials
10 lbs. @ $4 per lbs.
Produced
4,000 units
Labor
3 hrs. @ $21 per hr.
Materials purchased
50,000 lbs. for $215,000
Budgeted production
3,500 units
Materials used
41,000 lbs.
Labor worked
11,000 hrs. costing
$220,000
Instructions
Calculate the labor price variance and the labor quantity variance.
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